QQQ Daily, 05/06/2014: Chapman falling axe pattern
I said yesterday that if the Q's couldn't push above the upper resistance line then there is something very wrong. I was 100% certain that the Q's would push up and out of the channel and maybe even rise above the important swing high at $88.21. Hey, not so fast.
calmthewaves commented that he saw the Q's in a falling broadening pattern and when I looked I saw it too but I still thought the Q's would break out. They didn't and there is something wrong.
Basil Chapman, one of the best technicians out there, calls this pattern a falling axe pattern and it is not bullish. Because the Q's have tagged that bottom line four times over the past few weeks, I am now thinking that the Q's may be on their way to that lower line again, and that's not good. However, if the Q's find support above 85.11 then I'll still hold that the Q's will break up and out of this pattern and then we're off to the races. So 85.11 is key. We drop below 85.11 and then I would expect the lower support levels of 83.74 and 83.28 to be on the agenda.
I am long TQQQ but haven't added my last 1/3rd position and, most important, I have my stop in place.
GL
calmthewaves commented that he saw the Q's in a falling broadening pattern and when I looked I saw it too but I still thought the Q's would break out. They didn't and there is something wrong.
Basil Chapman, one of the best technicians out there, calls this pattern a falling axe pattern and it is not bullish. Because the Q's have tagged that bottom line four times over the past few weeks, I am now thinking that the Q's may be on their way to that lower line again, and that's not good. However, if the Q's find support above 85.11 then I'll still hold that the Q's will break up and out of this pattern and then we're off to the races. So 85.11 is key. We drop below 85.11 and then I would expect the lower support levels of 83.74 and 83.28 to be on the agenda.
I am long TQQQ but haven't added my last 1/3rd position and, most important, I have my stop in place.
GL
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